CANADA STOCKS-TSX surges as China comments lift resources

Thu May 27, 2010 5:08pm EDT
 
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* TSX up 205.22 points, or 1.78 percent, at 11,749.12

* China says Europe is a key investment market

* Bank results limit gains in financial issues

* Nine of 10 indexes higher (Adds details, quotes)

By Jennifer Kwan

TORONTO, May 27 (Reuters) - Toronto's main stock index ended higher for a second straight session on Thursday as commodity-linked stocks surged after China soothed investor worries by saying Europe was a key investment market.

Resource issues led the gains as oil climbed above $74 a barrel, while gold and base metal prices were also firmer. [O/R] [GOL/] [MET/L] XAU= The energy and materials sectors rose 4.2 percent and 2.2 percent, respectively.

Canadian Natural Resources (CNQ.TO: Quote) rose 4.9 percent to C$36.48, while Suncor Energy (SU.TO: Quote) climbed 5.5 percent to C$32.37. Imperial Oil (IMO.TO: Quote) climbed 3.7 percent to C$40.89 and EnCana Corp (ECA.TO: Quote) rose 3.9 percent to C$32.42. Teck Resources (TCKb.TO: Quote) was up 6.6 percent at C$36.79.

Market watchers said the catalyst for the rise in the resource-heavy TSX index was China's dismissal of a report that had said it was concerned about its euro-zone bond holdings. Beijing said Europe remains a key investment market for its foreign exchange reserves, helping to push up the euro and global equity markets. [ID:nTOE64Q04P] [FRX/] [MKTS/GLOB]   Continued...